West Michigan Barbecue Chain Files for Bankruptcy Amid ‘Extreme’ Demands
By Brian McVicar
Grand Rapids, MI – Major Turmoil in the Restaurant Industry
In what comes as a shock to the culinary landscape of West Michigan, the operator of four Dicky’s Barbecue Pit franchise restaurants has filed for bankruptcy. The cause centred around what are described as “extreme and unreasonable” financial demands from the corporate owner of Dicky’s Barbecue Pit. The franchise operator, Smokin’ Dutchman Holdings, operates Dicky’s Barbecue Pit restaurants located in Kalamazoo, Rockford, Jenison, and Holland.
Bankruptcy Filing Details
Smokin’ Dutchman Holdings took the legal step to file for bankruptcy in the federal court based in Grand Rapids. A significant financial scrutiny of Smokin’ Dutchman revealed the company is burdened with debt amounting to approximately $2.1 million.
A document within the filing stated that these financial challenges were directly linked to the “extreme and unreasonable” demands by the franchisor, Dickey’s Barbecue Restaurants, Inc. However, details outlining these specific demands weren’t divulged in the legal document. When approached for further details, Perry Pastula, the lawyer representing Smokin’ Dutchman Holdings, evaded elaborations, citing potential impending litigation.
Interestingly, the document explicitly expressed a desire by Smokin’ Dutchman Holdings for the bankruptcy court to “reject the Dickey’s Franchise Agreements,” effectively liberating them from the burdens imposed by Dickey’s.
A Disputable Situation
This allegation has not gone uncontested. Instead, Jeff Gruber, the Senior Vice President of franchise relations at Dickey’s Barbecue Restaurants, Inc., vehemently refuted these claims. He stated, “For anyone to state we imposed ‘extreme and unreasonable demands’ is simply inaccurate,” adding on that they have provided considerable support to Smokin’ Dutchman over the years and vowing to continue doing so.
Dickey’s Barbecue Restaurants, a fast-casual chain, boasts over 500 locations in 44 states, establishing its first restaurant back in Dallas, Texas, in 1941. The four dented locations at West Michigan are found at 212 Stadium Dr., Kalamazoo; 380 East Division St., Rockford; 420 Baldwin St., Jenison; and 12579 Felch Road in Holland. These were either opened or acquired by Smokin’ Dutchman Holdings between 2018 and 2022.
Despite the financial distress, Smokin’ Dutchman Holdings has confirmed that the respective restaurant locations will continue operations, and the current staff of 26 will remain employed. They’ve defended this by citing the bankruptcy court’s decision that permits them to continue operations as usual.